Ethereum surpassing Bitcoin is arguably one of the most controversial topics in the cryptocurrency industry. Calculated by market value, Bitcoin has occupied the throne of the most valuable crypto asset for more than a decade. The idea that Ethereum or any other competitor will surpass the first place naturally sparked controversy in the crypto industry. It is often boasted that BTC is the most complex and most stable money in the world. This is probably true. Conceptually, digital assets can be said to have strict, programmed monetary policies executed by robust social contracts and cannot be replicated to increase money. However, many people in the Ethereum community objected to this. Some people believe that it is inevitable that Ethereum "surpasses" Bitcoin. Ethereum is a general-purpose, programmable settlement layer that can handle anything of value, and its extension extends far beyond the core functions of Bitcoin. Ethereum's upcoming Eth2 upgrade and EIP 1559 deployment will convert ETH into a productive asset with potential deflationary monetary policy. Although there are still considerable execution risks in this transition, the combination of scalability and economical upgrade should not be underestimated. Although it seems impossible for some people to imagine Bitcoin giving up the throne, the truth is that Ethereum can already be said to have surpassed Bitcoin in terms of the three most important fundamental on-chain indicators of any public chain. The three indicators are: Value settlement: how much value is settled on the blockchain. Transaction fees paid: How much people are willing to pay to make that value settle on the blockchain. Settlement guarantee: How safe is the value after settlement on the blockchain? These three indicators essentially contain the core purpose of any blockchain: to provide a secure (preferably public) distributed ledger to facilitate peer-to-peer value transfer. 1. Value settlement Blockchain is the settlement layer. The total value settled on a blockchain represents whether the network fulfills its core purpose: to promote economic activity. Generally, the more value settled on the blockchain, the better the effect. It shows that people are willing to trust and use the network to accurately record and protect their value (ETH, BTC, USD, etc.) The value of Ethereum's daily settlement has now surpassed Bitcoin, and the growth rate gap is getting wider (Source: Money Movers) In this indicator, Ethereum leads Bitcoin across the board. According to Money Movers, the daily settlement value of Ethereum is more than 52 billion U.S. dollars, while the daily settlement value of Bitcoin is approximately 14 billion U.S. dollars. However, the Bitcoin community may quickly point out that this compares apples and oranges (both are fruits) because the settlement layer of Ethereum can handle any value. At the same time, Bitcoin only supports BTC, which inherently changes. The economic bandwidth available on the network is limited to one asset, not thousands. However, even if we look at this strictly regarding the value transfer between BTC and ETH, Ethereum is already in a leading position as of early May. Bitcoin is valued at 13.9 billion U.S. dollars per day, while Ethereum still settles more than 20 billion U.S. dollars per day in ETH. Although the economic bandwidth of Ethereum exceeds US$400 billion, Ethereum still has a higher value than Bitcoin settlement in terms of their native assets. Ethereum now has more trustless value than Bitcoin that is settled every day. Does this mean that ETH is used more as currency while BTC is used more as a store of value? The argument against this view is obviously that BTC is not used every day. It means storing value over time (it has done an excellent job historically)... 2. Transaction fees paid The public chain is engaged in the business of selling block space. A good blockchain is full of activities that people are willing to pay for. For me, this is one of the core indicators for determining the value of the blockchain because literally, the blockchain can be interpreted as the fees people are willing to pay for using the ledger. Under this indicator, Ethereum is once again crushing Bitcoin. Currently, the average cost of Ethereum for seven days is 32 million USD per day. In comparison, Bitcoin is $4 million. At this point, they are not even a problem of closeness—the difference in transaction fees between Ethereum and Bitcoin is about eight times. Why is it like this? In short, Ethereum provides an attractive ecosystem, which is full of economic and social opportunities worth paying for. If the user can participate in that 100,000 US dollars and earn 20% of APY, then he may be willing to pay a considerable fee to make the transaction happen. If a user wants to buy a crypto punk for millions of dollars to show off in Metaverse, he may be willing to pay a hefty fee to ensure that the transaction goes smoothly. If a user makes a new Uniswap and he thinks the price will be ten times, then he may not care how much the gas fee is. On the other hand, the foremost profit opportunity for Bitcoin is to send it from one address to another. Maybe start earning interest from the BlockFi account. But in any case, there are fewer opportunities for economic profit on the Bitcoin network, so it is less desirable to pay higher transaction fees. More and more people are scrambling to enter the block space of Ethereum, waving their gwei, telling the miners to shut up, take their money, and pack the transaction into the next block. The numbers speak for themselves: People are willing to use Ethereum instead of Bitcoin. 3. Settlement guarantee The last indicator we want to study is settlement guarantees. Nic Carter published a detailed article on this in 2019. He believes that this is one of the main issues to be considered when evaluating any public chain. This is because the settlement guarantee directly translates to the security of the blockchain. Once the user's transaction is verified on the chain, it will not be restored, making it full of confidence. This is important, especially for those who cherish the ideals of crypto punk! People want an economic system that can resist rollbacks and reversals. One way to measure settlement guarantees is to calculate the number of block confirmations required to make the transaction settle as if it were on Bitcoin. Once the user's transaction is verified on the chain, it will not be restored, making it full of confidence. This is important, especially for those who cherish the ideals of crypto punk! People want an economic system that can resist rollbacks and reversals. One way to measure settlement guarantees is to calculate the number of block confirmations required to make the transaction settle as if it were on Bitcoin. But we can go further. In Nic's post, he mentioned that the cost of the general ledger is one of the quantifiable measures of settlement guarantee. How to measure the cost of the ledger?
In short, it is equal to the amount paid to the verifier/transaction selector per unit of time. This means that the more fees users pay to miners each year (the sum of miner fees and block rewards), the less likely they are to attack the network. In other words, distributed ledgers are more secure because miners are more motivated to become honest participants. After some quick mathematical operations, we can calculate the annual fee paid to the miners: Bitcoin pays approximately US$14.25 billion to miners every year (based on a daily transfer fee of 900 BTC + US$3.8 million per day, BTC is calculated at US$40,000) Ethereum pays approximately $18.5 billion to miners each year (based on these block rewards and block time indicators) Yes, that's right. Ethereum currently pays more to miners per unit of time than Bitcoin. Ethereum has a higher ledger cost than Bitcoin. This means that under this measurement, Ethereum has a higher settlement guarantee. What is preventing Ethereum from surpassing Bitcoin? Ethereum settles more value, people are willing to pay more for this value, and Ethereum is more secure than Bitcoin (under specific metrics). So, what prevents Ethereum from surpassing Bitcoin? For me, it can be boiled down to two words: currency premium. Today, BTC is more widely known than ETH, a crucial part of Bitcoin's currency premium. After all, decentralized currencies like BTC are based on collective beliefs! People know more about Bitcoin. It has a straightforward narrative like digital gold. Retail investors understand this. Institutions are beginning to understand this. Like what we used to talk about, the most bullish reason for cryptocurrency is understanding it. People understand Bitcoin. They don't understand Ethereum... Investors have more than ten years to learn about Bitcoin. They have half the time to understand Ethereum (Ethereum is more complicated). But please don't get me wrong: if Eth2 and EIP 1559 are implemented, the narrative of ETH can be stabilized. All value generated on Ethereum will be directly credited to ETH. Its appeal to institutional investors will increase sharply, and they only need time to learn this new industry. Once this is done, the narrative of ETH will enter mainstream society. Ethereum settles more value, the value is more secure, and people are willing to pay more for that value than Bitcoin. The numbers on the chain will not lie. Ethereum is becoming a better settlement layer for realizing all the values in the world. When you look at it this way, it seems inevitable that Ethereum surpasses Bitcoin. This article is only a personal elaboration and does not make any investment advice. Thank you.
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Golden Observation | Ethereum in the eyes of mainstream institutions: Ethereum may surpass Bitcoin5/25/2021 In 2021, the development of Ethereum is remarkable.
According to AssetDash data, Ethereum has the highest market value ranking and has risen to the 14th place in global assets, once surpassing JPMorgan Chase, Bank of America, Paypal, and approaching VISA. Currently, it ranks 27th with a market value of 295.4 billion US dollars. At the same time, the ratio of the market value of Ethereum to the market value of Bitcoin has doubled in the past year. Ethereum accounts for 18.3% of the total market capitalization of the entire cryptocurrency market, while Bitcoin's dominance has dropped to 43.8%. Obviously, as the application of Ethereum continues to expand, the status of Ethereum is not what it used to be. Next, follow us to see Ethereum in the eyes of mainstream institutions. On May 25th, Todd Morley, founder of Guggenheim Investment Company, stated in an interview with Bloomberg TV that the utility of Ethereum is "much higher" than Bitcoin. He believes that any industry without a digital technology strategy will "bankrupt." Ethereum's application developers have grown at a rate of 20 times for six consecutive years, and the large-scale deployment of its utility functions and asset access "has not happened yet, and hopes to become a leader in this area." Investment banking giant Goldman Sachs recently stated in its "Global Macro Research" report that given the importance of practical use in determining the store of value, Ethereum is likely to replace Bitcoin as the dominant store of value. The Ethereum ecosystem supports smart contracts and provides a way to create new applications on its platform. Most DeFi applications are built on the Ethereum network, and most non-fungible tokens (NFT) issued are purchased using Ethereum. Compared with Bitcoin, Ethereum has a larger number of transactions, and this advantage reflects its dominance. In addition, Goldman Sachs also pointed out that blockchain platforms like Ethereum may become a vast market for reliable information providers, just like Amazon is today for the consumer goods market. JP Morgan Chase recognized the value of Ethereum in a report on April 27. He stated that Ethereum had performed significantly better than Bitcoin since the beginning of April and then gave three reasons that Ethereum has outperformed Bitcoin in the report. Reasons: First, the liquidity of Ethereum is more flexible. The liquidity shock in the crypto derivatives market has caused colossal liquidation. In the shock, the Bitcoin futures market was much more affected than the Ethereum futures market. During the market recovery phase, the trading depth of Ethereum recovered rapidly. Second, theEthereum spot turnover rate is much higher than that of Bitcoin, which means that long Ethereum positions are more inclined to hold spots than futures and perpetual contracts. Finally, the transaction activity of the Ethereum network shows the richness of its on-chain activities, including the evolving DeFi and other areas of the ecology. JPMorgan Chase stated that there is a big difference between Ethereum and Bitcoin. Bitcoin is more like an encrypted commodity than a currency and is linked to gold, a valued asset store. Ethereum is the backbone of the cryptocurrency ecological economy and acts as a medium of exchange in the ecology. Yassine Elmandira, an analyst at Ark Investment, said that in the next five years, Bitcoin's return to gold might reach ten times, and Ethereum may bring trillions of dollars in opportunities. Peter Schiff, a gold supporter and Bitcoin opponent predicts that the market value of Ethereum may exceed that of Bitcoin. He explained that although most cryptocurrency buyers realize that Dogecoin is a joke about Bitcoin or Ethereum, they don't realize the joke. But as cryptocurrency speculators turn to Ethereum, they must sell Bitcoin to fund the transaction. It is not so much that Bitcoin surpasses gold, as it is that Ethereum surpasses Bitcoin. Recently, NBA Dallas Mavericks owner Mark Cuban (Mark Cuban) said that the future potential of Ethereum is greater than that of Bitcoin because Ethereum has more application scenarios than Bitcoin, and the market for Bitcoin derivatives is too large. When a callback occurs, this will be a high-risk hidden danger. MicroStrategy CEO Michael Saylor divides the crypto market into crypto assets and crypto applications and claims that Bitcoin is the leader of crypto assets and Ethereum is the leader of crypto applications. No asset can be compared with Bitcoin; Ethereum is a completely different category. A paper recently published by the Federal Reserve Bank of St. Louis delves into the expansion of DeFi and its role in Ethereum. The article believes: "DeFi may lead to a paradigm shift in the financial industry, and may help build a more robust, open and transparent financial infrastructure." The price of Bitcoin dropped sharply this week, with the lowest falling below $30,000. However, famous Bitcoin analyst Willy Woo believes that the overall upward trend of Bitcoin is not over yet.
In an interview with podcast Peter McCormack published on the "What Bitcoin DidYouTube" channel on May 21, Woo spoke about some points, including Bitcoin's recent network and price trends and its current state. Woo pointed out that many macro indicators point to Bitcoin's price enthusiasm. Woo said: "Compared with market capitalization, there is a lot of activity among investors on the Internet." He referred to Bitcoin's NVT ratio, which shows the relationship between blockchain network activity and market value. Woo continued: "We didn't see any fanaticism. We sold from a highly organic level with no speculative premium. Taking 2017 as an example, I think we are 3.8% higher than the organic assessment." When talking about the current state of Bitcoin, Woo said: "This is just the middle stage of the derivatives bull market." According to TradingView, Bitcoin reached around $65,000 in April. Subsequently, Bitcoin fell below $50,000 for some time, rose to above this price level, reached nearly $60,000, and then began to fall to the $30,000 range. Woo said: "Just judging from the large number of tokens we sold, I think it will take a while to recover. I think that from a network health point of view, this is a good thing." He seems to be referring to the overall situation. McCormack asked Woo bluntly: "So this is not the end of the bull market?" To this, Woo responded: "No, definitely not." Looking at his chart, Woo said that the price target and details depend on the next few days, but he expects the price of Bitcoin to reach more than $100,000. During the interview, Woo and McCormack also talked about other issues. As a blockchain news information platform, Cointelegraph Chinese provides information only representing the author's personal views, and has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts and earnestly raise their risk awareness. Given that China has not yet issued policies and regulations related to digital assets, users in mainland China are requested to be cautious in their digital currency investments. The price of Bitcoin dropped sharply this week, with the lowest falling below $30,000. However, famous Bitcoin analyst Willy Woo believes that the overall upward trend of Bitcoin is not over yet.
In an interview with podcast Peter McCormack published on the "What Bitcoin DidYouTube" channel on May 21, Woo spoke about some points, including Bitcoin's recent network and price trends and its current state. Woo pointed out that many macro indicators point to Bitcoin's price enthusiasm. Woo said: "Compared with market capitalization, there is a lot of activity among investors on the Internet." He referred to Bitcoin's NVT ratio, which shows the relationship between blockchain network activity and market value. Woo continued: "We didn't see any fanaticism. We sold from a highly organic level with no speculative premium. Taking 2017 as an example, I think we are 3.8% higher than the organic assessment." When talking about the current state of Bitcoin, Woo said: "This is just the middle stage of the derivatives bull market." According to TradingView, Bitcoin reached around $65,000 in April. Subsequently, Bitcoin fell below $50,000 for some time, rose to above this price level, reached nearly $60,000, and then began to fall to the $30,000 range. Woo said: "Just judging from the large number of tokens we sold, I think it will take a while to recover. I think that from a network health point of view, this is a good thing." He seems to be referring to the overall situation. McCormack asked Woo bluntly: "So this is not the end of the bull market?" To this, Woo responded: "No, definitely not." Looking at his chart, Woo said that the price target and details depend on the next few days, but he expects the price of Bitcoin to reach more than $100,000. During the interview, Woo and McCormack also talked about other issues. As a blockchain news information platform, Cointelegraph Chinese provides information only representing the author's personal views, and has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts and earnestly raise their risk awareness. Given that China has not yet issued policies and regulations related to digital assets, users in mainland China are requested to be cautious in their digital currency investments. A weekly blockchain industry summary column launched by a weekly magazine covers critical news of the week, market and contract data, mining information, project dynamics, technological progress, and other industry trends. This article is a weekly project, taking you at a glance at the progress of mainstream projects and star projects this week.
Bitcoin PlanB: Bitcoin may rise five times in six months Recently, the well-known Bitcoin analyst PlanB said on Twitter that even if there is negative news such as the Turkish ban, US tax FUD, and Musk's FUD on energy consumption, there is no way to change the process of the Bitcoin bull market. The current Bitcoin bull market seems to follow the footsteps of the 2013 boom cycle when BTC soared ten times in just a few months. Both the S2FX model and the data on the chain show that we are only halfway from the bull market. In the next six months, it would not be surprising if Bitcoin could rise five times. Bitcoin's market value accounted for 38.9% CoinGecko data shows that the current market value of Bitcoin has fallen to 38.9%, while the market value of Ethereum has accounted for 19.8%. Twitter CEO: Bitcoin makes "everything" better A weekly magazine reported that Twitter CEO Jack Dorsey said on Twitter that Bitcoin has changed "everything" and is developing for the better. We will always strive to make Bitcoin better. Glassnode options trader: crypto options market makers affect the price of Bitcoin Coindesk posted that people once again attribute the fall in Bitcoin prices to concerns about the Fed's early interest rate hike, the recent pessimism in the financial market, and Tesla's decision to suspend Bitcoin payments. However, Glassnode options trader and researcher Fredrick Collins said that options market makers that sell cryptocurrencies on the spot or futures markets to hedge their books (to offset the bullish risk) might exacerbate this downward trend. Collins said that market makers sold a lot of shorts in the range of $52,000 to $50,000, and he estimated that nearly 2,900 bitcoins were forced to sell during the market crash to offset short exposure. CryptoQuant CEO: Derivatives traders should be careful in the short term; whale users deposit BTC on the exchange CryptoQuant CEO Ki-Young Ju tweeted today: "If you are a long-term bitcoin investor, don't worry. Your investment portfolio is the same as that of institutional investors in the United States. If you are a derivatives trader, short-term Be careful inside. (Relatively speaking) Whale accounts deposit bitcoin on exchanges." MicroStrategy CEO: Bitcoin has a low-cost energy advantage MicroStrategy CEO Michael Saylor stated that Bitcoin mining is the foundation of the currency network and is critical to the growth, stability, longevity, vitality, and integrity of the currency network. The workload-proof architecture is a masterpiece of engineering, which can anchor the system to the real world and provide seven layers of security protection. Miners can monetize any form of energy anywhere on earth, at any price, and at the highest price at any time. Companies compete globally to sell energy to the network, which is the largest wholesale customer, and Bitcoin has a low-cost energy advantage compared to its competitors. Bitcoin's PoW physically and politically anchors the encrypted asset network to real things, thereby promoting fierce competition in the market to decentralize, improve and protect the network, ensuring vitality and integrity over time Sex. Ethereum The balance of the Ethereum 2.0 pledge address exceeds 4.6 million. According to OKLink data from Oukeyunchain, the current Ethereum 2.0 deposit contract address has received 4600130.0 ETH, and the pledge amount exceeds 4.6 million. The number of profitable Ethereum addresses reaches a record high. According to a financial report, glass node data shows that the number of profitable addresses on Ethereum (7-day moving average) has just reached a record high of 58,590,298.167. The ratio of the market capitalization of Ethereum to the market capitalization of Bitcoin has doubled in the past year. According to a financial report, Pantera Capital, a cryptocurrency investment company, stated that in the past year, the ratio of the market value of Ethereum to the market value of Bitcoin has doubled. Ethereum now accounts for 19.2% of the total market capitalization of the entire cryptocurrency market, while Bitcoin's dominance has dropped to 40.7%. Beachclub, the largest outdoor club in North America, begins accepting Bitcoin and Ethereum payments. Outdoor club Beachclub will start accepting Bitcoin and Ethereum payments, becoming the first club in Canada to accept Bitcoin and Ethereum as payment methods. It is reported that Beachclub can accommodate 10,000 people and is the largest outdoor club in North America. Ark Investment Analyst: Dogecoin may be touted, Ethereum may bring trillions of dollars in opportunities Yassine Elmandira, a cryptocurrency analyst at Ark Investments, said that despite Musk's efforts to turn Dogecoin into an actual means of payment, Dogecoin might be trumped and eliminated from the current high price. Bitcoin and Ethereum are currently leading the cryptocurrency market. He predicts that in the next five years, Bitcoin's gains against gold may reach ten times, and Ethereum may bring trillions of dollars in opportunities. other projects Vitalik Buterin sells over 40 million USD meme tokens through Archer Swap. On May 14, Ethereum Vitalik Buterin sold meme tokens in a large amount, and over 40 million US dollars were sold through ArcherSwap. At first, V God exchanged meme tokens into ETH through Uniswap, but the transaction failed due to the runaway and cost many ETH. Later, V God switched to ArcherSwap for trading. Note: ArcherSwap can rely on Uniswap and Sushiswap liquidity without publicly broadcasting transactions to mempool. The Ethereum miner extractable value (MEV) arbitrage product Archer developed by an anonymous team was launched three weeks ago. Founder of SushiSwap: It is wise to allocate 1% of DeFi funds to Woofy, a new ecological project of YFI On May 12, yearn. finance (YFI) core developer banter launched a new project, Woofy, to split YFI tokens, allowing two-way conversion of YFI and WOOFY, YFI holders will be able to exchange for WOOFY, and 1 YFI can be exchanged for One million WOOFY can also be exchanged for WOOFY back to YFI. 0×Maki, the co-founder of SushiSwap, tweeted today that the SushiHOUSE proposal passed 2% of the DeFi distributable funds. I think it is the only wise thing to allocate 1% of the funds to WOOFY, and the rest is allocated the yearn ecological index. KIRA Network and Polkadot ecological, innovative contract platform Clover Finance reached a cooperation According to a financial report, according to official sources, the cross-chain project KIRA Network announced a strategic partnership with Clover Finance, a Polkadot ecological intelligent contract platform, to realize liquid non-custodial crypto-asset pledges. By establishing a cross-chain asset bridge between KIRA and Clover, any digital asset issued on the Clover platform and can be accessed through it will be able to obtain income by staking on KIRA. Tether disclosed the reserve details for the first time: commercial paper accounted for more than 65%, and other investments such as digital currencies only accounted for 1.64% Tether, the issuer of the stable currency USDT, disclosed its reserve details for the first time since its launch in 2014. As of March 31, 2021, Tether's reserves contain nearly 76% of the cash and cash equivalents and other short-term deposits and commercial paper. The rest are secured loans, bonds, and other investments, including digital currencies such as Bitcoin. Precisely, commercial paper constitutes most of its cash and cash equivalents, accounting for 65% of the share. Trust deposits accounted for 24%, reverse repurchase notes accounted for 3.60%, treasury bills accounted for about 3%, and actual cash only accounted for 3.87%. Block. one will launch the crypto exchange Bullish this year, with Li Zekai serving as the company's senior consultant. According to a financial report, on May 11, Block. one today announced a new subsidiary, Bullish Global. As an independent operating company under Block. One's parent company, Bullish Global, will focus on planning to launch a new blockchain-based cryptocurrency exchange called "Bullish" in 2021. Block. one is EOSIO open-source software development company. Bullish Global has secured more than US$10 billion in cash and digital assets, including Block. One's initial injection of US$100 million in cash, 164,000 Bitcoin (BTC), and 20 million EOS, as well as a new value of US$300 million. A new round of strategic investment. Notable investors who led this round include Peter Thiel's Thiel Capital and Founders Fund, Alan Howard, Louis Bacon. , Li Zekai, Christian Angermayer, Galaxy Digital, and global investment bank, Nomura. In addition to participating in Bullish Global's latest round of financing, Peter Thiel, Alan Howard, Li Zekai, and Christian Angermeier will also serve as senior advisors. In addition to shopping around in terms of investment costs, friends who buy excavators have to choose a miner with the right price and make a trade-off between the current cycle and the specific benefits. The same is true for friends who have bought a mining machine. The input depends on the output. To put it bluntly, I know how much it costs to mine a day. Some people said: "Filecoin is a game for delayed gratifiers because they only focus on value and not price." Compared with the widely fluctuating exchange rate when Filecoin went online, long-term holders are more concerned about the calm after the storm. Juan Bennett put forward the concept of "IPFS" 7 years ago. Absenteeism to join the Filecoin market comes from worldwide, and their number is still growing. Many participants hope to obtain high profits directly by mining FIL, but the most critical factor affecting profits is the number of issuances and prices. According to the mining situation and release mechanism, the amount of FIL in mining users is not much, and the current currency value is slightly lower than before. Short-term high prices are not conducive to the long-term development of the project. Filecoin mining: One is policy support Mass data, blockchain, etc., all belong to the country's "new foundation," and these foundations are distributed storage. IPFS/Filecoin is undoubtedly the leader and the world's most considerable decentralization on this distributed storage track. Storage network 2. Market Outlook Before 2025, the data volume is expected to grow to 175 ZB, but 93% of the data has not yet been stored. The current central storage makes the network very fragile. At the same time, it destroys privacy. The storage cost is high, and it forms a bottleneck that hinders innovative data applications. So Filecoin has become an alternative. The founders of Union Square Ventures said that this is an essential milestone in developing the open Internet. The market power of some powerful data monopolies stifled the early Internet's flourishing technology. Only by using an open data storage network like Filecoin can we realize the original Internet promise. Driven by disruptive technologies, the gradual maturity of the blockchain requires distributed storage. Therefore, Filecoin will shoulder its mission. The next generation of web3.0 also requires Filecoin as the foundation of Internet value. IPFS technology is a global consensus technology, and domestic Huawei, Alibaba, Radio, and Television, etc., are all using IPFS technology. If IPFS technology is indeed implemented worldwide, it will need to implement a Filecoin storage project based on IPFS to control the transfer, download, retrieval, and packaging of all files in the IPFS transmission network. (1) Filecoin is one of the few landable blockchain projects closely integrated with the real economy (2) Filecoin mining has created a storage market, the core of which is ecological win-win and value creation (3) While the IPFS network reduces costs and storage performance, it also improves data security (4) Compared with Bitcoin's high energy consumption incentive mechanism, Filecoind's incentive mechanism is more environmentally friendly (5) Solve the problem of the dynamic response of IPFS data distribution nodes (6) To help the popularization and investment of IPFS, through the incentive of Filecoin, distributed storage and retrieval will bring a substantial incremental market to IPFS Due to the continuous development, stability, and security of the Filecoin network, users will choose lower cost, safer, and more efficient decentralized storage services in more and more traditional storage markets. IPFS will undoubtedly dominate the storage market, and Filecoin will also become the mainstream of digital gold in the future. WeChat screenshot_20210511151935.png In addition, compared to Bitcoin and Ethereum, which are already at a high level, FIL is still at a relatively low early level, and there is enormous room for upside in the future. In short, investing in Filecoin mining is a project with the least foreseeable risk and the greatest return. It is an excellent opportunity for ordinary investors to improve their lives. Release the free NFT distributed storage solution NFT. Storage According to official sources, Filecoin recently announced that it would launch a free NFT distributed storage solution NFT. Storage. The service was created by Protocol Labs and Pinata, specifically for NFT data storage, allowing developers to use content addressing and decentralized storage to protect NFT assets and related metadata-ensuring that all NFTs follow best practices and Long-term visits. In the first three days, the adequate computing power of Filecoin's entire network reached 5 EiB, which was less than seven months shorter than the last time it broke through 1 EiB. Currently, Filecoin has become the world's largest distributed storage network and is still developing rapidly. Filecoin has faced doubts and is now advancing at a fantastic speed. I believe that shortly, it will be the brightest star. Filecoin is not a short-term method of using storage server mining to achieve FIL. Still, it uses a period to accumulate waiting and then sells it at a relatively reasonable price at some point in the future. Future markets in the era of big data: artificial intelligence, big data, cloud computing, Internet of Things, etc. Filecoin requires changes to the underlying Internet protocols to store and retrieve global data. Actual data storage is the true value of IPFS, which is the purpose of Filecoin's release. The current linear release of the first phase has ended and entered the second phase. The daily volume has decreased by 160,000, and the market has formed an oversupply situation; the computing capacity of the entire network has reached 5 EiB, and the network has entered a stage of steady and rapid development; the growth rate of mining companies has far exceeded market expectations. Two thousand two hundred seventy-nine miners are currently active, making FIL scarce; as investors continue to be optimistic about FIL, today's gray funds have bought for the eighth time in a row, stimulating market investment enthusiasm; the Federal Reserve maintains easing policies, and the U.S. dollar is under pressure, which will inevitably stimulate the development of digital currencies; As the leader of the currency circle, the price of Bitcoin doubled after halving production last year. According to Bitcoin's rules, FIL is experiencing a bull market. Based on the above predictions, Filecoin is likely to usher in a new round of rising in May. Bitmain Guo Yiliang: Expected to launch a new generation of water-cooled miners by the end of the year
On the morning of May 6, the price of Ethereum (ETH), the world's second-largest encrypted digital currency, exceeded US$3,500, setting a new record high. A few days ago, after breaking through the US$3,000 mark, the price of Ethereum was repeatedly set high. Bitcoin is undergoing repeated turbulence, and the strong performance of Ethereum, which has always been "losing everything," is surprising.
Today, the total value of Ethereum is as high as US$400 billion, which is about 40% of Bitcoin. At this time last year, the gap between the two was as high as seven times. It should be noted that Ethereum's currency holding addresses are excessively concentrated in large accounts, which hides a lot of risks. The reporter found that the number of Ethereum's entire network holding currency addresses is as high as 150 million, but the top 50 addresses hold 31% of Ethereum. In addition, as of May 6, 7 of the top 10 mobile addresses have sold Ethereum in a large amount in 7 days, totaling about 1.29 million, or have cashed in more than 4 billion U.S. dollars. A year's increase of more than 16 times Ethereum "demonstrates" Bitcoin In the past few days, the "big guy" Ethereum has launched a "rising and rising" market, which has repeatedly set the highest price in history. According to the non-small app of encrypted digital currency market software, at 6 a.m. on May 6, the price of Ethereum broke through 3,500 US dollars, setting a new record high. Before this, the price of Ethereum has continued to rise for many days after breaking through the $3,000 mark on May 3. As of the morning of the 7th, the price of Ethereum was US$3,529, and the total currency value exceeded US$400 billion. The increase in the last week was nearly 29%, and the increase in the last year was more than 16 times, reaching 1633%. "The encrypted digital currency Ethereum (ETH) issued by the blockchain network protocol layer is the basis for the normal operation of distributed applications." William Li, the chief researcher of Ouyi OKEx Research Institute, told the reporter of "Securities Daily" that most of the blockchain network The value is concentrated in the network protocol layer (Ethereum network), and a small part of the value is distributed in the application layer (distributed applications). Taking distributed finance as an example, 90% of DeFi projects are concentrated in the Ethereum network. The prosperity of DeFi directly drove the market demand for ETH and pushed up the price of ETH. William Li believes that from the news, Canada launched three Ethereum ETFs at the end of April; the European Investment Bank also reported that it would issue digital bonds on the Ethereum network. This news is directly beneficial to the increase in the price of ETH. "The ratio of Bitcoin to Ethereum has hit a new high this year, which means that the bull market in the crypto market has entered the second half." Huoxun Finance founder Long Dian analyzed to reporters that the superposition of the bookmaker's hype effect and the psychological effect of retail investors has resulted in Ethereum. Skyrocketed. On the one hand, affected by capital rotation, early profitability, and speculation funds for the early purchase of Bitcoin began to seek new concepts and targets. For Ethereum, which has just broken through new highs, speculation funds further promoted the price increase. On the other hand, the bull market in the crypto market attracts more and more newcomers to the market. Most new users take a wait-and-see attitude towards the high price of Bitcoin. Ethereum, which seems cheaper per unit, has become the first choice for new retail investors. The reporter found that the fiercely rising Ethereum is rapidly closing the currency gap with Bitcoin. Non-small apps show that at the same time, the current price of Bitcoin is about 57,000 U.S. dollars, and the total currency value is 1 trillion U.S. dollars, which is about 2.5 times that of Ethereum. A year ago, at the beginning of May last year, the total currency value of Bitcoin reached 169 billion U.S. dollars, and Ethereum was 23 billion U.S. dollars. The difference between the two is more than seven times. From the perspective of market share, Bitcoin currently accounts for about 47% of the total value of encrypted digital currencies globally, while Ethereum accounts for 18% and is on the rise. However, William Li analyzed that "Bitcoin's position as the Moutain of the encrypted digital currency market is difficult to shake. It is currently in the stage of the encrypted digital currency bull market, and various altcoins have generally risen, which will reduce the market share of Bitcoin; in the future; The market enters a bear market stage, and Bitcoin's market share will increase again." Several large households collectively reduce their holdings Sell 1.29 million Ethereum The reporter observed that while Ethereum has repeatedly set new highs, many big players have taken the opportunity to sell large amounts of Ethereum. Ethereum's currency holdings are relatively concentrated, and a large number of Ethereum is concentrated in a few large accounts. The non-small app shows that the number of Ethereum holding addresses is 150 million. The top 10 addresses hold 19% of the coins, and the top 50 addresses hold 31% of the coins. It is reported that the currency holding address refers to the address with a specific token, similar to the account name in Alipay and bank cards. "Generally speaking, for a certain currency, the more dispersed the currency holding addresses, the more stable and safer it is." Ding Feipeng, director of the criminal department of Beijing Shangguang Law Firm, told a reporter from Securities Daily, but only from The analysis of the currency holding address is not enough. It depends on whether there are third-party platforms such as exchanges and wallets in the previous currency holding addresses. These platforms hold many retail encrypted assets, which will lead to the "illusion" of relatively concentrated currency holdings... "About three years ago, in June 2018, the top 10 Ethereum addresses held only 10% of the coins. Among them, except for the "cold wallet" that has not been moved from the beginning to the present, the other addresses have one in the past three years. The process of'acquisition'. This shows that the risk of manipulation of the price of Ethereum has increased." Fu Rao, executive director of the International Institute for New Economics, told reporters. It is worth noting that as of May 6, the large number of Ethereum sold in the seven days was as high as 1.29 million, or more than 4 billion U.S. dollars have been cashed out. The non-small app shows that as of May 6, 7 of the top 10 mobile addresses have reduced their holdings of Ethereum within seven days, and the total amount of reductions reached 1.29 million, which is calculated based on the opening price of 3,300 US dollars on May 6. Seven large companies may have made a profit of 4.3 billion U.S. dollars. Fu Rao believes that the seven primary mobile addresses sold a lot of Ethereum, which shows that the "bookmaker" of Ethereum believes that the price of Ethereum is now overvalued. However, the top 10 addresses, after years of "acquisition" and have plenty of chips in their hands, may not be "escape from the top." "The recent massive sell-off of mobile addresses may not be because big players are cashing out. There may be reasons for third-party institutions, such as promotion of hot projects." Ding Feipeng reminded me that encrypted assets are an emerging investment product, with risks and opportunities coexisting. Ordinary investors should fully assess their risk tolerance before investing and invest rationally. In recent days, in the cryptocurrency market, Ethereum (ETH) has sprung up and has performed even better for other cryptocurrencies. According to CoinGecko data at the time of writing, the price of ETH has reached $2,917, a 24-hour increase of 2.5%. The daily increase reached 31.9%, more than twice the 7-day increase (13.2%) of Bitcoin. When there is explosive growth in the decentralized financial market in 2020, the price of Ethereum does not seem to have risen much, and Bitcoin still has a dominant position in the cryptocurrency market. If this trend does not change, decentralized financial contracts. The total value of locked positions in China may slow down in recent months. But just after the Bitcoin and Ethereum markets experienced a certain degree of liquidity shock in early April, the microstructure of these two significant markets was more or less affected. The market depth has been compared to the average level of a few weeks ago. There has been a decline, both in total trading volume and on every significant spot cryptocurrency exchange. As always, the microstructure performance of the cryptocurrency market is instructive, and it also allows us to understand the medium-term risks better and make a better balance. The latest data analysis shows that the liquidity shocks in the Ethereum and Bitcoin spot markets mainly originated in the derivatives market and led to the emergence of large-scale liquidation. We have reason to believe that the liquidity balance of Ethereum and Bitcoin is the same: hedge funds and other speculative investors lend to small institutions and retail participants through cash/futures basic positions. However, analyze CME Group's futures positions according to the type of investors. You will find that the analysis results are consistent with the conclusion that Ethereum's liquidity can recover more quickly because leveraged funds are mainly short positions. In contrast, retail investors and small and medium-sized institutional investors choose long. After the Bitcoin and Ethereum derivatives market began to deleverage, compared with Bitcoin, the recovery of the spot price of Ethereum is better and more elastic. The market depth seems to have a faster recovery speed, and some exchanges The liquidity situation is even better than at the beginning of the month. What is the reason for this? The first thing to understand is that the overall size of each futures market is consistent with the relative changes in net liquidation: for Bitcoin, compared to the ex-ante level, open positions have dropped by 26%, and net liquidation has dropped. For Ethereum, the liquidation position has fallen by less than 4%, and the net liquidation has fallen by 17% compared to the previous level. In addition, some cryptocurrency exchanges' Ethereum futures holdings are higher than the level before the liquidity shock at the beginning of this month. However, Bitcoin futures holdings are still falling across the board. This shows that the Ethereum futures market can better find the liquidation demand side, reducing the impact on the spot price and recovering liquidity more quickly. Second, the "foundations" of the two public chains of Ethereum and Bitcoin are also different, and the clearing mechanism is therefore different. Compared with Bitcoin, the Ethereum network pays more attention to "transactions." This is because Ethereum provides support for decentralization and other transaction types. The number of these transactions is also increasing, resulting in the flow of ETH tokens. The liquidity is higher than that of BTC. In this case, Ethereum is less affected by the decrease in open positions in futures. Its performance is even better than those of crypto tokens that are often in circulation. In addition, Bitcoin seems to be more susceptible to futures trading. For example, a week ago, the total net long liquidation of Bitcoin accounted for 23% of the ex-ante open interest (ex-ante open interest). The total long liquidation accounted for 17% of the prior open positions. The high-frequency cash/future base price shows that the Ethereum market has not been significantly affected, although the net liquidation amount is almost the same. Through the open position data, it is also found that Ethereum futures trading is easier to find market demand. In this context, the dramatic recovery of the Ethereum market depth has attracted more attention. Most importantly, there are fundamental differences in the narratives of the two cryptocurrencies, Ethereum and Bitcoin. Bitcoin is more like an encrypted commodity, which competes with gold and is a store of value. At the same time, Ethereum is the backbone of the encrypted native economy and is more regarded as a medium of exchange. Therefore, in a sense, the potential value of Ethereum is more excellent. In the long run, it should surpass Bitcoin, and there will be more room for development. to sum up When the most severe stress, the cash/future prices of these two mainstream cryptocurrencies both fell sharply, the current price level of the ETH/BTC trading pair is still lower than the peak value in 2017/2018, which is roughly equivalent to the "peak price" About 30% of ETH. Still, this decline has a much smaller impact on ETH. Moreover, the current transaction volume on the Ethereum blockchain is getting higher and higher. The significantly higher part of the ETH token transaction volume can be considered highly liquid, which further weakens the influence of futures settlement on ETH. In addition, the price difference of similar contracts between significant cryptocurrency exchanges has also decreased. It has maintained a certain degree of convergence for most of the past week, which indicates that arbitrage opportunities have decreased. Conversely, it also shows that after the initial market price shock, Ethereum's overall market performance is also better (the recovery status of Ethereum's network computing power is also better). There is now at least evidence that ETH is more flexible in liquidity, less dependent on transfer risks and "storage" risks in the derivatives market, and can better respond to changes in market demand. In other words, compared to Bitcoin, the valuation of Ethereum is less dependent on the demand for leverage. Following further breakthroughs in blockchain technology and the continued growth of decentralized finance and other components of the Ethereum ecological economy, Ethereum should have more room for development relative to Bitcoin. |
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